Cuban Focused Conglomerate!
Presentation - August 2016
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Disclaimer – Always seek professional advice!
This presentation (in this projected form in hard copy and as verbally presented) (collectively “Presentation”) is provided on the basis that neither Leni Gas Cuba Limited and Knowlton Capital Inc. (to be renamed LGC Capital Ltd) (the “Company” or “LGC”), nor its
officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisors make any representation or warranty (express or implied) as to the origin, validity, accuracy, reliability, relevance, currency or completeness of the material
contained in the Presentation and no responsibility is taken for any errors or omissions. Nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. LGC excludes all warranties
(including implied warranties) and all liability that can be excluded by law for any loss, claim, damage, cost or expense of any nature (including that arising from negligence) arising out of the Presentation (or any accompanying or other information) whatsoever, nor by
reason of any reliance upon it. LGC accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this Presentation or any other information made available to a person or any obligation to furnish the person with any
further information.
This Presentation includes certain statements that may be considered “forward-looking information” within the meaning of applicable Canadian securities regulations and “forwarding-looking statements” within the meaning of the United States Private Securities
Litigation Reform Act of 1995 (collectively, “forward-looking statements”). All statements in this Presentation (other than statements of historical facts) are forward- looking statements.
The forward-looking statements contained in this document are made as of the date of this document. Except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking
statements, whether as a result of new information, future events or circumstances after the date of the Presentation, or to reflect the occurrence of unanticipated events.
The forward-looking statements in this document reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Where such statements expressly or impliedly relate to future events, expectations
and/or belief as to future events or results, involve known and unknown risks and uncertainties such expectation or belief is expressed in good faith and is believed to have a reasonable basis.
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to
be correct as actual results or developments may vary or differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include prevailing and projected
market prices, exploitation and exploration estimates and results, continued availability of capital and financing, and general economic, market or business conditions. Factors that could cause actual results to differ materially from those in forward-looking statements
include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the projects, unforeseen technology changes that results in a reduction in commodity demand and the general level of global economic activity. Readers are
cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof.
This Presentation references other corporations and provides certain information in relation to these corporations. All such information was obtained from the public record. The Company provides no assurances as to the accuracy or completeness of such
information and readers are cautioned not to place any undue reliance on such information.
LGC has not made any independent inquiries as to the accuracy or completeness of the press release issued by MEO Australia and LGC assumes no responsibility for the contents thereof. LGC cautions that the press releases issued by MEO Australia refer to
"Prospective (Recoverable) Resource" in connection with Block 9 PSC. LGC assumes that such term and any other similar terms in the press releases were used in accordance with applicable Australia regulations but is not able to so confirm. Further, LGC is not
able to confirm whether applicable Australian regulations are equivalent to those in the Canadian Oil and Gas Evaluation (COGE) Handbook and cannot confirm whether the disclosure in the MEO Australia press releases complies with the COGE Handbook and
applicable Canadian regulations. Investors are cautioned to take all of the foregoing into consideration when reading the press releases issued by MEO Australia, respectively, particularly any references to "prospective resources".
All persons should seek appropriate professional advice in reviewing or considering the Presentation and all other information with respect to LGC and evaluating the business, financial performance and operations of LGC. Neither the provision of the Presentation
nor any information contained in the Presentation or subsequently communicated to any person in connection with the Presentation is, or should be taken as, constituting the giving of investment or financial product advice to any person in respect of dealing in LGC
securities, and no such information should be taken to constitute a recommendation or statement of opinion that is intended to influence a person in making a decision to deal in LGC securities.
Some photos and pictures in this Presentation are for illustration purposes only and do not depict current LGC operations.
This Presentation does not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant in determining whether to deal in LGC securities, including but not limited to any person's objectives, financial situation or
needs. Each person must not rely on the information provided but should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this Presentation and other matters that may be relevant to it in considering whether
to deal in LGC securities. The information contained in the Presentation is not intended to be an offer for subscription, invitation or recommendation with respect to the shares in any jurisdiction and neither this document nor its contents shall form the basis of any
contract or commitment.
LGC owns the copyright in this Presentation. No part of this Presentation may be shown or distributed to third parties or reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written
permission of LGC. The distribution of the Presentation in jurisdictions outside the United Kingdom and the British Virgin Islands may be restricted by law and you should observe any such restrictions.
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Cuban Focused Investment Company
LGC Capital Limited
• Only Public Company totally focused on investing in “Cuba”
• Multi Strat (conglomerate style) Investing Company
• Oil
• Bespoke Tourism/Conferences/Events/Film Production
• Import/Export
• Sport
• Coffee
• Renewable Energy
• Cognicion – Making things happen in Cuba for Foreign Companies
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Competitive Advantage
LGC Capital is unique!
• Public Company totally dedicated to Cuba.
• All partners are well established in Cuba.
• Foreign companies – lengthy processes to establish business in Cuba.
• LGC’s businesses have fully operational offices in Havana.
• Highly experienced “on the ground” Cuban expertise.
• Relationships with many Government entities.
• Massive potential to acquire and grow in many sectors.
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Capital Structure
• LGC Capital Ltd
• Shares Issued and Outstanding:
• Exchange:
• Ticker Symbol:
• Status:
• Website:
Offices (operations and Investments):
234,045,328
TSXV
“QBA”
Tier-2 Investment Issuer
www.lgc-capital.com
Havana, London, Toronto,
Australia
(Note: check TSXV:KWC news for full details of existing options)
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Board of Directors
The New Board:
• David Lenigas
• Mazen Haddad
• Anthony Samaha
• Rafi Hazan
• Guy Charette
• Sebastien Bellefleur
Joint Chairman and CEO
Joint Chairman
CFO
Secretary
Independent Director
Independent Director
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The Cuban Business & Strategy
• LGC’s objective is to acquire stakes in one or more listed or unlisted
projects, businesses, joint ventures, production agreements or companies
(in whole or in part), creating a platform for possible further acquisitions in
sectors where the opportunity exists to create value for LGC’s
shareholders.
• It is intended that LGC will invest and acquire an appropriate percentage
holding, possibly including management of a company or companies and
businesses with part or whole connections or relationships to Cuba’s oil
and gas, agribusiness, manufacturing, industrial, transport and logistics,
biotech, construction, utilities, business services, support services, retail
and/or tourism sectors.
• In line with its investment policy, LGC currently holds the following
investments and has entered into the strategic alliance and joint ventures
set out below:
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Oil Investments – Real Opportunities
• MEO Australia Limited
• In February 2016, LGC made a strategic investment in Cuban oil explorer MEO
Australia Limited (“MEO”), a company incorporated under the laws of Australia and
listed on the Australian Securities Exchange (ASX), as a result of which LGC became
the single largest shareholder of MEO, with a 15.8% interest. MEO is pre-qualified as
a foreign onshore and shallow water operator in Cuba and was awarded a 100%
interest in the 2,380 km2 onshore oil block, Block 9 PSC in Cuba, in September 2015.
As LGC also holds a 15.14% interest in Petro Australis, as noted above, which holds a
conditional 40% back-in option to Block 9 PSC, the investment by LGC in MEO
significantly increased LGC’s underlying exposure to Block 9 PSC.
• Petro Australis Limited
• LGC owns approximately 15.14% of the outstanding shares of Petro Australis Limited
(“Petro Australis”), an unlisted public company incorporated in Australia. Petro
Australis’ principal activity is sourcing oil and gas opportunities in the Americas with
a focus on Latin America (including Cuba). Petro Australis holds a conditional 40%
back-in option to the onshore oil block, Block 9 PSC in Cuba.
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Cuban Oil – The Massive Potential
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Source: MEO Australia Limited
Cuban Oil - Onshore Block 9
Source: MEO Australia
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Multi Billion Barrel Resource Potential
Refer to MEO’s website
for Cautionary statement
on Resources
Source: MEO Australia
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Cuban Travel & Tourism
Travelwelcome Ltd. and the InCloud9 Group
• In September 2015, LGC acquired 40% of the issued share capital of
Travelwelcome Ltd. (“Travelwelcome”), a private company incorporated in the
United Kingdom. Through its representative office in Havana, Travelwelcome
provides the services of a specialist Cuban ground handler which works with
other specialist travel companies around the world to assist with tailor-made trips
to Cuba for their clients. This includes booking local hotels, transport, local tours
and guides as well as other specialist activities such as art tours, horse riding,
deep sea fishing, fly fishing and scuba diving. In addition, Travelwelcome has the
capacity to assist with the organization of special events such as conferences,
weddings and group activities around Cuban festivals such as the Cigar Festival
and Film Festival.
• In November 2015, LGC announced that it had finalized arrangements for
Travelwelcome to combine with the Cuban music, TV and film industry specialist
InCloud9 group of companies in Havana. LGC’s interest in the combined
Travelwelcome and InCloud9 group remains at 40%.
• www.incloud9.com
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Cuban Import/Export JV
• In November 2015, LGC entered into an agreement with Cuban-centric trading
company Groombridge Trading Corp. (“GTC”) to form a 50/50 joint venture (the “GTC
JV”) designed to expand GTC’s existing business of supplying products, machinery
and equipment to the fast-growing Cuban tourism sector and exporting agricultural
products from Cuba.
• GTC, established in 2013, is a Canadian corporation that is approved to trade in Cuba
by the Cuban Ministry of Foreign Trade and Investment and the Ministry of
Agriculture and is further authorized to trade with other Cuban Government entities.
• The GTC JV assists GTC with its existing order book of imports for the hotel and
tourism sector and will become a financial partner in new business moving forward.
The GTC JV has an exclusive, first right of refusal to participate on a deal-by-deal
50/50 basis in any current and new transactions originated and operated by GTC. In
addition to growing GTC’s current trading activities, the GTC JV also works with GTC
to develop a number of agricultural projects and initiatives currently under
negotiation in Cuba and assist with new export orders of agricultural products to
Europe and Canada.
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• www.gtcorp.ca
Cuban Sports Initiative
Strategic Alliance – Rushmans Limited
• In April 2016, LGC announced that it and Rushmans had formalized a
50/50 joint venture (the “Rushmans JV”) to explore the opportunities
available for international entities to participate in the development
funding for Cuban sport. Under the terms of the Joint Venture
Agreement, Rushmans will grant the Rushmans JV an exclusive
licence to use the Rushmans’ brand and intellectual property in
respect to Cuban sporting opportunities.
• www.rushmans.com
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Cuban Coffee - Nespresso
Cuba Mountain Coffee Company
• On 20 June 2016, Leni Gas Cuba Limited announced that it had acquired a 10%
interest in CMC with the aim of assisting CMC’s efforts in boosting Cuba’s coffee
production and exporting this valuable premium product to the world.
• CMC has agreements in place with Cuba to promote, on a worldwide basis,
single-origin gourmet coffee from Cuba’s famous “Guantanamo Region”, both as
green beans and also via CMC’s own bespoke coffee brand, “Alma de Cuba”.
• In April 2016, CMC also signed a Memorandum of Understanding with Nestlé
Nespresso with the ambition to explore how to work together with the non-profit
organization, TechnoServe, to boost production and quality in some of the
Guantanamo micro-regions for the benefit of Cuban farmers and the protection
of their environment, subject to the approval of the Cuban authorities and
compliance with applicable laws
• www.almacuba.com
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Renewable Energy Joint Venture
Joint Venture with Commercial Funded Solar Limited
• In May 2016, LGC entered into an agreement with Commercial Funded Solar Ltd.
(“CFS”), a United Kingdom solar power and storage specialist, designed to assess
the potential for installing and operating renewable energy and hybrid power
solutions (solar power, energy storage and integrated power management
systems) in Cuba.
• CFS is a multi-national company with operations in the United Kingdom, Africa
and South America specializing in the installation of medium-sized, commerciallyfunded renewable power and storage systems of between 30kw and 1MW each.
• CFS and LGC intend to lead the development and construction of each project
with the funding coming from external investors. Under the terms of the
agreement, CFS and LGC will share on a 50/50 basis the development, funding
and construction revenues for each renewable power plant built, and share on a
75/25 basis the 10-20 year operational contracts for all the systems.
• www.cfsolarworld.com
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Contacts
LGC Capital Ltd
Registered Office:
Address:
800 Place Victoria, Suite 3700, Montreal, QC, Canada
Contact: Rafi Hazan
Secretary and Director
Phone:
(514) 839-7234
UK Contact Details:
Address:
Suite 3B, 38 Jermyn Street, London, SW1Y 6DN, United Kingdom
Phone:
+44 (0) 20 7440 0640
Fax:
+44 (0) 20 7440 0641
Other Contact Details:
Email:
[email protected]
Twitter:
https://twitter.com/LGCCapital
follow us @LGCCapital
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